The Indian chemical industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040.
Union Chemicals and Fertilizers Minister Jagat Prakash Nadda on Saturday said the government will make necessary interventions in its policies and programmes to address challenges faced by the chemicals and petrochemicals industry and boost the sector's growth.
The minister was speaking after launching the 13th edition of the India Chem 2024 event to be held in October this year in Mumbai.
"The Prime Minister desires that we have to become a $5 trillion economy. If we have to become a 5 trillion economy, we have to align our programmes or policies accordingly, to see to it that this petrochemical industry chemical industry also goes in the same way and aligns itself, so that we all together contribute to that USD 5 trillion economy," Nadda said.
The minister mentioned that industry representatives have talked about the challenges faced by the chemicals and petrochemicals industry and also offered various suggestions to address those issues.
"I, as a minister, can assure you that whatever interventions are needed in policies, in programmes, whatever changes in the strategies are needed, the government is committed to it, and we will go forward with that commitment," Nadda said.
The minister also asked the industry to focus on reducing imports, research & development and skill improvement.
Nadda also launched the brochure for the 13th edition of India Chem.
Anupriya Patel, Minister of State for Chemicals & Fertilizers, and Nivedita Shukla Verma, Secretary, Department of Chemicals and Petrochemicals, were also present on the occasion.
Nadda said the theme of India Chem 2024, "Advantage Bharat: Indian Chemicals and Petrochemicals Paving the Future" aligns well with Prime Minister Narendra Modi's vision of making India a USD 5 trillion economy.
The 13th edition of India Chem is going to be held on 17th-19th October in Mumbai.
Nadda said the government is committed to the growth of the industry and has initiated numerous structural reforms to support industrial development in general and strengthen the chemical sector in particular.
Patel said the chemical and petrochemical sector plays a crucial role in the economic development of key sectors like automotive, construction, electronics, healthcare, textiles, and FMCGs.
She highlighted the increasing contribution of the chemical sector in economic development as well as the opportunities for future development.
Patel stated that India is the second largest exporter of chemical dyes and dyestuff as well as agrochemicals in the world. It also contributes about 3 per cent of global chemical sales.
"With a clear focus on investment-friendly reforms, the removal of policy bottlenecks is a top priority for the government," she said.
India Chem 2024, the flagship event of the department, is one of the largest composite events of the industry in the Asia-Pacific, comprising an International Exhibition and Conference.
The India Chem exhibition aims to showcase the huge potential of the Indian chemical industry and its different industry segments (including chemicals, petrochemicals, agrochemicals etc.) and to provide a platform for ground-breaking discussions, visionary ideas, and strategic collaborations among industry representatives.
The Indian chemical industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040.
Rajendra V Gogri, Co-Chairman, FICCI National Chemical Committee and Aarti Industries Chairman and Managing Director, highlighted the global chemical industry's shift towards emerging markets like India, citing advantages in costs, logistics, labour, and equipment.
He emphasised the long-standing request for a production-linked incentive (PLI) scheme in the chemical and petrochemicals sector to boost manufacturing and reduce imports, according to the FICCI statement.
Gogri also stressed the importance of improving the ease of doing business, particularly in expediting projects and streamlining environmental regulations.
Furthermore, he underscored the need to promote effective circularity to capitalise on opportunities in the chemical industry.